HK Stock Market Move | Cement stocks lead the gains, national cumulative cement production declines year-on-year, institutions are optimistic about the industry, supply discipline consensus strengthening.

Cement stocks lead the gains, as of the deadline, CNBM (03323) rose by 5.82% to HK$5.27; BBMG Corporation (02009) rose by 5% to HK$0.84; Anhui Conch Cement (00914) rose by 4.6% to HK$24.1; CR BLDG MAT TEC (01313) rose by 4.35% to HK$1.68. On the news front, data from the National Bureau of Statistics shows that in 2025, the national cumulative cement production was 1.693 billion tons, a year-on-year decrease of 6.9%, the same as the 1-11 months, narrowing by 2.6 percentage points compared to the same period last year, with production at its lowest level since 2010. In December, the national monthly cement production was 144 million tons, a month-on-month and year-on-year decrease of 6.6%. Soochow stated that the cement industry is expected to maintain the intensity and sustainability of proactive adjustment on the supply side. The bank believes that in 2026, under the leadership of industry leaders, the consensus on self-discipline in supply will be strengthened, and the strength of industry peak-shifting will continue to increase, providing a bottom support for profitability. However, in the context of unstable demand, the industry's supply and demand need frequent rebalancing, constraining the industry's profit elasticity. If physical demand stabilizes and improves, the elasticity of cement prices in the peak season can be considerable. The bank believes that in 2026, industry profits are expected to show an oscillating improvement trend compared to the second half of 2025, with provinces with large increases in demand for key infrastructure projects expected to lead the country's overall level.